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Pakistan Hit With $6 Billion Judgment In Long-Running Mining Case


FILE: The hills near the site of the Reko Diq copper mine in the southwestern Balochistan Province in Pakistan.
FILE: The hills near the site of the Reko Diq copper mine in the southwestern Balochistan Province in Pakistan.

The World Bank's International Center for Settlement of Investment Disputes (ICSID) has slapped Pakistan with a judgment of nearly $6 billion in the Reko Diq mining case.

The ICSID on July 12 awarded Tethyan Copper, a joint venture between Antofagasta of Chile and Canada's Barrick Gold, a $4.08 billion penalty and $1.87 billion in interest.

Pakistan has said it will appeal the case, a process that could take two to three years.

Tethyan said it had invested more than $220 million to develop mineral deposits at Reko Diq, an extinct volcano near Pakistan's border with Iran and Afghanistan. Reko Diq holds one of the world's richest untapped deposits of copper and gold.

In 2011, the Pakistani government refused to grant the company a mining lease to continue operations.

The Pakistani Supreme Court terminated the deal in 2013, and the lawsuit between Tethyan and Pakistan has been ongoing for seven years.

The company had sought $11.43 billion in damages.

In 2017, the ICSID ruled against Pakistan in the case but did not determine damages.

Based on reporting by Tribune and Dunya News

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